Kamala Harris’s Affordable Housing Plan: The Good, the Bad, and the Ugly

I just saw an ad from the Harris campaign promising to build 3 million affordable homes in the next four years. My first thought was, why hasn’t this been done already? She’s already in office, part of the administration that’s been in power for years.

Today, I want to break down Kamala Harris’s plan to tackle America’s housing affordability crisis. While some ideas sound promising, others seem like nothing more than political marketing. Let’s dive into The Good, The Bad, and The Ugly.

The Tax Incentive for Starter Homes: All Talk, No Real Impact

Kamala’s first idea is to offer tax incentives to build starter homes. Here’s the thing—nobody cares about tax credits.

What we need are real dollars. In places like Los Angeles, where the government spends $600,000 per unit for homeless housing, why not provide actual funds to developers to build affordable homes?

Tax credits won’t make a dent in the problem because you can’t buy land, materials, or pay workers with tax credits. The only people who might benefit from this are the big builders like Lennar Homes. So, while it sounds good on paper, it’s not going to change much.

• Key Point: Tax credits don’t build houses; real cash does.
• Beneficiaries: Large corporate builders, not small developers or individual investors.

Expanding Low-Income Tax Credits: A Non-Starter

Another part of Harris’s plan is to expand low-income housing tax credits. Again, this sounds great for the headlines but won’t solve the core issues. It’s not going to lower the cost of building or make housing any more affordable.

This won’t change the game for real estate investors or those trying to provide affordable housing.

• Key Point: Tax credits are not a direct solution to lowering building costs.
• Impact: Minimal effect on housing affordability.

$40 Billion Fund for Building Innovation: A Small Step Forward

Harris proposes a $40 billion fund aimed at local municipalities to develop infrastructure and innovative building materials. While this idea has some merit, whether it passes through the Senate is another story. It could help builders like myself by making it easier to construct affordable homes, but it’s not a game-changer. I’d rate this about a five out of ten—useful, but not revolutionary.

• Key Point: Could help with innovation in building materials and processes.
• Challenges: Senate approval and effective implementation.

Federal Land for Building: A Potential Game-Changer

Now, here’s a part of Harris’s plan that I actually think could work—releasing federal land for building. This could be a real win because land costs are one of the biggest hurdles for developers.

Giving developers access to cheap or free federal land could significantly reduce the overall cost of building homes.

• Key Point: Access to cheaper land reduces the biggest cost barrier for developers.
• Potential Impact: Increased affordable housing if implemented correctly.

Cutting Red Tape: A Hollow Promise?

Harris claims she will cut the red tape to make it easier for developers. As a developer who has built over 700 homes, I can tell you that cutting red tape would be the single biggest impact on making housing affordable.

The problem is, Democrats have historically been the ones creating the red tape. Permits, zoning, and entitlement processes can drag on for years, tying up capital and delaying projects. This is a Democrat saying they’re going to do the exact opposite of what their party usually does. I find it hard to believe this will actually happen.

• Key Point: Cutting red tape would dramatically speed up development and reduce costs.
• Skepticism: Historically, Democrats have been the ones to create more regulations, not cut them.

$25,000 in Down Payment Assistance: A Double-Edged Sword

Finally, Harris proposes $25,000 in down payment assistance. On the surface, this sounds great, but where’s that money coming from?

Likely higher taxes or more government borrowing, which adds to our national debt. If the government continues to print money for initiatives like this, it drives up home prices, which is great if you already own property but not so great if you’re trying to enter the market.

• Key Point: Increased demand from down payment assistance could drive home prices up.
• Concerns: Funding sources and the potential for increased national debt.

The Real Issues: Regulations, Permits, and Government Overreach

The core problem with housing in America isn’t a lack of tax credits or down payment assistance; it’s the layers of government regulation that make building anything a nightmare.

We’re 7 million affordable homes short of what’s needed, and regulations, permits, and zoning are the biggest roadblocks. The government takes from developers in the form of taxes and then uses those funds inefficiently, often spending far more per unit than a private developer would.

• Key Point: Excessive regulations and government inefficiency are the biggest barriers.
• Solution: Streamlining the process would be the real game-changer.

Kamala Harris’s plan has some bright spots, but it’s mostly filled with political promises that are unlikely to be fulfilled. As a real estate investor, my job is to navigate these challenges and continue to provide affordable housing and jobs.

I’m skeptical that any politician will truly fix the housing crisis, but it’s up to us as investors to find ways to work within the system—or better yet, change it.

If you’re looking to get started in real estate or want to learn how to navigate these complex waters, I’ve got resources that can help you. Head over to 15Kcourses.com, where I’m giving away a free wholesale course to help you take your first steps in real estate.

Let’s cut through the noise, focus on what matters, and keep building the future, one property at a time.